Truckload line-haul costs for November 2012 rose 2.7 percent compared to last November. These costs were up 1.4 percent in November from October, as costs moved modestly upward for the second straight month.
In Avondale Partners’ monthly report, Donald Broughton stated, “We believe that the month-to-month uptick in pricing in November was largely the result of a tighter spot market in the Northeast due to Hurricane Sandy (i.e. carriers being paid a large premium to go into the NE and then driving empty out), and not a sustainable uptick in pricing power.”
Avondale predicts that carriers will aim for 2-3 percent rate increases in 2013, but admits this may not be achievable given the current supply/demand dynamic.
Base costs (not including fuel surcharges) for intermodal moves rose 0.4 percent year-over-year in November and 1.6 percent from the previous month. After rising along with diesel prices in August and September, intermodal costs held in October as diesel again began to move down.
The November increase was likely a result of Hurricane Sandy. “Given the current supply/demand dynamic we believe intermodal rates will remain relatively flat,” stated Avondale’s Donald Broughton in Avondale’s monthly investors report.
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